Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.9%), Nasdaq Composite (-1.7%), and DJIA (-0.4%) continue to drift lower shortly after midday.

On the earnings front, Zebra Tech (ZBRA 252.66, +35.70, +16.46%) is launching higher after delivering a strong Q1 beat and raising its FY26 EPS outlook, reinforcing confidence that demand across automation, machine vision, and AI-enabled workflow solutions remains healthy despite ongoing memory supply concerns. The company also guided Q2 and FY26 EPS above consensus expectations, supported by strong backlog trends, healthy customer pipelines, and continued momentum across manufacturing, logistics, retail, and healthcare markets.

Meanwhile, Hims & Hers Health (HIMS 24.62, -4.52, -15.49%) is sharply lower after its Q1 results highlighted the near-term cost of its weight-loss strategy shift. Revenue increased 3.8% yr/yr to $608.1 million, missing expectations. Subscribers grew 9% to nearly 2.6 million, but monthly revenue per average subscriber declined 6% to $80, while U.S. revenue fell 8% to $529.9 million. HIMS also swung to a $92.1 million loss after earning $49.5 million last year. The pressure was largely tied to HIMS' pivot away from compounded GLP-1s and toward branded products like Wegovy. Overall, the reaction appears less about weak GLP-1 demand and more about the profitability of HIMS' post-compounded GLP-1 model. Early traction in branded weight loss looks encouraging, but investors appear to be questioning how much earnings power it can preserve as the business mix shifts.